Home Depot Customers Make Fewer Trips but Spend More

Key takeaways

• Home Depot’s Q2 earnings beat, driven by higher ticket sizes and tariff refunds, but a dip in customer trips and a slight margin squeeze temper the upside.
• Revenue $47.861 billion (+5.7% YoY)
• Adjusted EPS $4.92 (+5.1% YoY)
• GAAP EPS $4.79 (+4.6% YoY)

What happened

Home Depot reported fiscal Q2 2026 revenue of $47.861 billion, up 5.7% YoY, beating the $47.271 billion consensus. Adjusted diluted earnings were $4.92 per share, 5.1% higher than the $4.73 estimate, while GAAP diluted earnings rose 4.6% to $4.79 per share. Comparable sales grew 1.7%, driven by a 2.8% rise in the average ticket to $92.50, even as total customer transactions fell 0.8% to 443.2 million. The company also received $730 million in tariff refunds, cutting cost of goods sold by $685…

Why it matters

The results show Home Depot’s ability to lift average order value and maintain profitability despite a slight dip in foot traffic, reinforcing its guidance for fiscal 2026. The tariff refunds provide a temporary cost cushion that could improve margins in the near term. The mixed customer traffic signals a shift…

Short-term and longer-term

Short-term. Short‑term traders should watch the stock’s reaction to the tariff refund and the slight narrowing of GAAP operating margin.

Longer-term. Over the next few months, investors should focus on how Home Depot’s shift to higher‑ticket, smaller projects plays out against its store‑opening strategy and inventory costs.